Bitcoin News Update: MSTR's Business Role Under Scrutiny as MSCI Considers $8.8B Removal

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Bitcoin News Update: MSTR's Business Role Under Scrutiny as MSCI Considers $8.8B Removal

Bitget-RWA2025/11/24 08:30

By:Bitget-RWA

- MSCI's proposed exclusion of MicroStrategy from global indices could trigger up to $8.8B in outflows due to its 50%+ bitcoin asset allocation. - JPMorgan warns the removal would damage MSTR's liquidity and capital-raising ability, with shares down 67% since November 2024. - CEO Michael Saylor defends MSTR's operational identity, rejecting "passive bitcoin fund" claims while adding $835M in crypto holdings. - MSCI's Jan. 15 decision could disrupt index-linked investor exposure to bitcoin, with MSTR shares

MicroStrategy (MSTR) could be subject to a sell-off of up to $8.8 billion if

MSCI

decides to remove it from its stock indices because of its substantial

bitcoin

assets, JPMorgan analysts report. The index provider is currently seeking feedback until December 31 on whether to exclude firms whose digital assets make up at least half of their total assets from its global indices.

MSTR

, which has about $9 billion in passive investments through ETFs and mutual funds linked to major indices, may experience $2.8 billion in outflows from MSCI alone, with the total potentially reaching $8.8 billion if other index providers follow

[according to reports]

. The outcome, anticipated by January 15, 2026, has already played a role in MSTR’s 67% drop from its November 2024 high and a 56% decrease over the past six months

[according to analysis]

JPMorgan believes that exclusion would negatively impact MSTR’s liquidity, market value, and fundraising ability. "Active managers are not required to mirror index changes, but the reputational hit could raise doubts about the cost and practicality of future equity or debt offerings," analysts commented

[according to analysts]

. The company’s market capitalization compared to its bitcoin reserves has reached its lowest point since the pandemic, and a negative decision could make its valuation almost entirely dependent on its crypto holdings

[according to market data]

Bitcoin News Update: MSTR's Business Role Under Scrutiny as MSCI Considers $8.8B Removal image 0

Executive Chairman Michael Saylor has consistently defended MSTR’s position as an operating business with a $500 million software division, dismissing claims that it acts as a passive bitcoin investment vehicle. "Strategy is not a fund, not a trust, and not a holding company," he wrote on X, stressing the company’s digital lending services and operational model

[as he stated]

. Saylor also pointed to a recent $835 million bitcoin acquisition, demonstrating his ongoing faith in the asset despite price swings

[according to reports]

MSCI’s proposal has brought more attention to firms with large digital-asset portfolios. MSTR’s presence in the Nasdaq 100, MSCI USA, and MSCI World indices has given both retail and institutional investors indirect exposure to bitcoin through index-based products

[according to market analysis]

. Experts caution that removal could disrupt this exposure, possibly speeding up outflows as investors adjust their holdings

[according to analysts]

The consultation period ends on December 31, with a final verdict expected January 15. MSTR shares dropped 5.7% in pre-market trading Friday as uncertainty increased

[according to market data]

. Saylor’s recent public statements and MSTR’s aggressive bitcoin purchases indicate the company is bracing for regulatory and market challenges, but the final impact remains unclear as institutional investors assess the risks of concentrated digital-asset exposure.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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- JPMorgan warns MSTR faces $8.8B in forced selling if MSCI excludes it from indices due to 50%+ digital asset threshold. - MSTR's stock dropped 67% since November 2024 peak as its valuation increasingly aligns with Bitcoin holdings (mNAV ~1.1). - CEO Saylor defends MSTR as "Bitcoin-backed enterprise," but critics argue its financial model lacks sustainability outside benchmarks. - Retail backlash against JPMorgan intensified, with figures like Grant Cardone closing accounts amid short-selling allegations.

Bitget-RWA•2025/11/24 08:46

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Bitcoin News Today: JPMorgan’s Alert Ignites Discussion: Does MicroStrategy Serve as a Stand-In for Bitcoin or Function as a Business Entity?

- JPMorgan warns MSCI's potential exclusion of crypto treasury firms like MicroStrategy could trigger $8.8B in passive outflows, sparking market debates over corporate classification. - MicroStrategy CEO Michael Saylor rejects criticism, emphasizing the firm's "Bitcoin-backed operating" model with $500M software revenue and 649,870 BTC holdings. - Bitcoin's $81,500 slump and 23% Coinbase drop highlight institutional unease, while MSTR stock absorbs hedging pressure as crypto investors' proxy. - Analysts sp

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